Date: 12/22/1999 7:35 PM
Subject: S7-24-99
Dear SEC
I am writing in regards to the proposed law concerning the
short selling of OTCBB stocks (Proposal #S7-24-77). The
naked shorting of OTCBB stocks should b eliminated. One of
the main reasons why "penny" stocks are so riskyis not soley
because of the companies themselves. But because of the
rampant naked shorting by market makers and offshore
brokers. This activity goes unchecked every day and must be
dealt with accordingly. The abolition of naked shorting in
conjunction with the requirments of being fully reporting
will ensure a fair and equitable market for investors and
companies alike, a market where a company's ture value is
reflected in the price and not distorted, suppressed or
inflated artificially by
manipulation. Sincerely,
Kenneth R Sponaugle